Question
We are a very early stage start-up and just finished a Friends and Family funding round. We are making an offer to our first full-time employee and are offering stock options. Our Stock Option Agreement includes a section to list the "Exercise Price per Share". I am unsure what to put here since I think we are a little ways away from getting a formal third-party valuation completed. It also doesn't seem correct to put the minuscule price per share the founders initially paid for our shares. Any thoughts?
Answer
Generally you will start with 10M shares with a par value of 0.00001 per share which values the company at $100. This is pretty standard for a C-Corp
How long has it been since you started the company?
